Background information

Following the outbreak of the Iran war at the end of February 2026, energy prices soared worldwide, which spilled over to motor fuel prices. In Hungary, the initial price hike was reflected in the 4.6% jump in motor fuel prices compared to the previous month in March 2026, according to Central Statistical Office (KSH)). To prevent a severe fuel price rise before the election, the government passed decree 50/2026, , introducing a retail price cap for motor fuels. This is not the first time a motor fuel price cap is introduced in Hungary: Amid the global post-Covid energy price turbulences the government introduced a price cap on fuel in November 2021, which remained in effect until December 2022. Case HU-2022-6/2417 At that time, the price cap forced petrol stations to operate at a loss, leading to the closure of many of them. This time, while there are similarities, the mechanism and the effect is somewhat different.

Content of measure

The legislation maximised the retail price of 95-octane petrol at HUF 595 (€ 1.53) in March, according to the monthly average exchange rate) per litre, while the price of diesel was capped at HUF 615 (€ 1.58). Motor vehicles with foreign license plates are not eligible for price-capped fuel, some exception notwithstanding,. The operators of filling stations must check the license plates of the vehicles. According to a clarifying supplementary provision, government decree 58/2026, in the absence of a license plate, the service station operators must be presented some other vehicle-related document that proves that the vehicle is domestic. The same supplementary regulation clarifies that the protected prices also apply to motor fuels that are delivered to company-operated fuelling stations (instead of purchasing directly from a petrol station). The capped prices apply to the on-site refuelling of agricultural vehicles and watercrafts. Decree 58/2026 also set the maximum of wholesale prices at the same level as the protected retail prices.

Use of measure

According to data from the Hungarian statistical office, the month-on-month surge in motor fuel consumer prices in March decelerated markedly in April and stopped entirely in May. The price cap certainly had a role in the slowing of price increases. On the other hand, the price cap also resulted in an increase in fuel consumption, while in other countries consumers are incentivised to reduce their consumption, online telex.hu reported on 27 April 2026. At the same time, the measure caused tension among filling station operators, because maximizing the wholesale and retail prices at the same level led to the disappearance of markup and made many stations—especially among the independent small operators—unprofitable, telex reported on 21 April. The government freed up parts of the emergency fuel reserve and made it available for filling stations at a price lower than the maximum retail price, thereby enabling the operators to achieve a modest markup, telex.hu reported in May. But the reserve that is given away at a low wholesale price is being restocked by paying the market price for foreign suppliers, which makes the setup financially unsustainable in the long run.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Applies to all citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

No involvement was reported.

Views and reactions

Some experts have opined that instead of the price cap, motor fuel prices should be kept in check through the reduction of VAT on motor fuels, market expert Attila Holoda said in April 2026. Other economists have urged to abolish the price cap and instead apply targeted social policy measures to cushion the impact of rising fuel prices on the vulnerable segments of the population, telex.hu reported in May. The Association of Independent Gas Stations warned in April that fuel shortages were in the offing, since the mark-up had fell to unsustainably low levels after the introduction of the protected prices.

Sources

• 09 March 2026: Government regulation on the protection of fuel supply, in consideration of the international energy safety crisis situation (njt.jog.gov.hu)
• 12 March 2026: Govt decree 58/2026 (njt.jog.gov.hu)
• 23 March 2026: “Worse than in 2022”—petrol station operators make preparations for limiting refueling and demonstrations (telex.hu)
• 16 April 2026: Interview with Attila Holoda (www.szeretlekmagyarorszag.hu)
• 21 April 2026: Price cap is unmanageable for small family gas stations (telex.hu)
• 27 April 2026: Fuel consumption jumped due to the protected prices (telex.hu)
• 13 May 2026: Open letter to the Minister of Economy and Energy (www.levego.hu)
• 15 June 2026: Consumer price indices by detailed groups of expenditure, monthly (www.ksh.hu)